XRP Signals Key Trend Direction

What to Know:

• XRP is experiencing renewed bearish pressure, recently dropping to $1.81 amid a broader crypto market downturn.
• The next trend direction for XRP hinges on key support levels, with analysts closely watching for potential breakdowns or consolidation.
• Institutional investors should monitor these levels for potential entry or exit points, as a break below support could signal further downside risk.

XRP is once again in the spotlight as the crypto market faces another downturn. After a multi-month pullback from its 2025 high, XRP is now trading below $1.9, succumbing to renewed bearish pressure. The weekend saw a sharp downturn, pushing XRP’s price from around $1.91 to $1.81, and despite a rebound, it remains below the $1.9 mark, leaving investors and analysts closely monitoring key levels for the next directional move.

Crucial Levels to Watch

Analysts are closely tracking key levels on XRP’s weekly chart, emphasizing major support and resistance zones. On the upside, the $2.27–$2.56 range represents a critical hurdle. This zone aligns with prior breakdown levels, meaning XRP must decisively reclaim it to signal a potential trend reversal. A successful breach here could indicate renewed bullish momentum, attracting institutional interest and inflows.

Conversely, on the downside, $1.85 acts as immediate support, defining the current trading area. Holding this level would suggest consolidation, a period of stability that could precede a bullish move. However, a breakdown would significantly increase downside risk, potentially triggering stop-loss orders and accelerating the decline. If $1.85 fails to hold, the next support emerges near $1.69, where buyers may attempt to stabilize price action. Further selling pressure could drive XRP toward $1.27 or $0.98, both representing potential long-term support levels in a broader market downturn.

Next Trend Direction Hinges on $1.92

Currently trading around $1.88, XRP closely aligns with the $1.92 level, identified as critical support. Maintaining above this zone would suggest consolidation or potential upside, offering a degree of stability for investors. However, a decisive break below this level would likely confirm a bearish shift, opening the door to further downside and potentially triggering a cascade of sell orders. The $1.92 level, therefore, represents a crucial pivot point for XRP’s short-term trajectory.

$1.92 is the key support level to watch for $XRP, as it will define the next trend direction. pic.twitter.com/sXNfWm9pVD

— Ali Charts (@alicharts) January 24, 2026

XRP Faces Short-Term Downtrend After Trendline Break

Adding to the bearish sentiment, XRP has broken below a key ascending trendline, signaling a likely continuation of its short-term downtrend. This breakdown confirms that the price is trading beneath the trendline, prompting caution for traders. The breach of this trendline suggests a shift in market structure, potentially leading to further declines in the near term.

Elliott Wave Analysis

Using the Elliott Wave indicator, projected target zones range from $1.85 to $1.65. While confirming a high likelihood of XRP reaching $1.65, traders should expect occasional bounces along the way. Elliott Wave analysis attempts to forecast future price movements by identifying patterns in investor psychology, and in this case, it suggests further downside for XRP. It’s worth noting that technical analysis, while informative, is not always predictive, and unforeseen events can always impact market movements.

XRP’s current market position underscores the volatility inherent in digital assets. Key support and resistance levels will dictate short-term price action. Institutional investors should closely monitor these levels and the broader market structure to assess risk and identify potential opportunities. Whether XRP can hold its support or faces further declines remains to be seen, but careful analysis and risk management are essential in navigating these uncertain waters.

Related: Bitcoin Derivatives Flash Near-Term Stress

Source: Original article